EPD: Sell vs Hold vs Inherit

1,000 units of Enterprise Products Partners — breakeven price, tax comparison, §1014 step-up analysis.

This tool provides projections based on assumptions. It does not constitute tax, legal, or investment advice. Consult a qualified CPA or financial advisor before making decisions based on this output.

Position: 1,000 units of Enterprise Products Partners at $37.50/unit

Tax assumptions: 32% bracket, MFJ, NIIT, §199A QBI deduction. Unit appreciation: 3.5%/year.

Should You Sell EPD or Hold?

We computed three exit strategies for each holding period: sell now, hold and collect distributions, and hold until death (§1014 step-up). Every number comes from the IRS Partner's Basis Worksheet.

5-Year Horizon

Sell Now

Proceeds: $38,812

Tax: -$790

Net: $38,022

Hold 5 Years, Then Sell

Distributions: $9,693

Dist. tax: -$570

Terminal FMV: $44,538

Exit tax: -$NaN

Net: $NaN

Hold Until Death

Heir receives: $44,538

Tax eliminated: $4,172

Total: $53,661

Breakeven Price

$58/unit

Selling only makes sense above this price over a 5-year horizon.

10-Year Horizon

Sell Now

Proceeds: $38,812

Tax: -$790

Net: $38,022

Hold 10 Years, Then Sell

Distributions: $24,093

Dist. tax: -$1,418

Terminal FMV: $52,897

Exit tax: -$NaN

Net: $NaN

Hold Until Death

Heir receives: $52,897

Tax eliminated: $8,969

Total: $75,572

Breakeven Price

$85/unit

Selling only makes sense above this price over a 10-year horizon.

15-Year Horizon

Sell Now

Proceeds: $38,812

Tax: -$790

Net: $38,022

Hold 15 Years, Then Sell

Distributions: $41,528

Dist. tax: -$2,444

Terminal FMV: $62,826

Exit tax: -$NaN

Net: $NaN

Hold Until Death

Heir receives: $62,826

Tax eliminated: $14,517

Total: $101,910

Breakeven Price

$117/unit

Selling only makes sense above this price over a 15-year horizon.

20-Year Horizon

Sell Now

Proceeds: $38,812

Tax: -$790

Net: $38,022

Hold 20 Years, Then Sell

Distributions: $62,638

Dist. tax: -$6,386

Terminal FMV: $74,617

Exit tax: -$NaN

Net: $NaN

Hold Until Death

Heir receives: $74,617

Tax eliminated: $18,268

Total: $130,869

Breakeven Price

$153/unit

Selling only makes sense above this price over a 20-year horizon.

Bottom Line

Holding 19 more years and letting heirs inherit produces $92,847 more than selling today. Your heirs receive $74,617 with a fresh stepped-up basis, eliminating $18,268 in deferred taxes and ~$40,000 in §751 recapture. Selling would only make sense above $153.16/unit.

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Computed by lucasandersen.ai MLP Tax Simulator v0.1.0. 2026-04-03. Not tax advice.